09 2015 № 2 (21)

7 TMK and Power of

8 Major Upgrades Completed at 10 TMK IPSCO’s Ambridge Plant

14 The – TMK Partnership Sergey Chetverikov: Delivery of energy resources is always high on the agenda

Potential of Large- Diameter Pipe Table of Contents

3 News

7 TMK and Power of Siberia

8 Major Upgrades Completed at Ambridge Plant

14 The Gazprom – TMK Partnership

16 Vladimir Shcherbatykh Interview

# 2 (21)

Project manager: Certificate of publication Correspondents: Svetlana Bazylchik No. FS77-40128 of June 11, 2010. [email protected] The edition is registered with Roger Bentley (USA) the Federal Service for Supervision Anna Vasilieva () Incorporator: Editor’s office address: in the Sphere of Communications, Olga Kolomeets (Romania) Russia, 105062, Moscow, 40 Information Technology and Mass Mikhail Semenov (Russia) Pokrovka Street, Bldg. 2a Communications. Tel.: +7 (495) 775 7600 Fax: +7 (495) 775 7601 Any use of the materials without the editor’s consent is prohibited. E-mail: [email protected] www.TMK-group.com Print run is 3,900 copies. Printed on recycled paper.

2 YOURTUBE News

>>> NEW PRESIDENT FOR RUSSIAN STEEL

Dmitry Pumpyanskiy, Chairman of Alexey Mordashov, chair of the the TMK Board of Directors, was Severstal board of directors. elected president of the Russian Steel Nonprofit Partnership at its regular Russian Steel is an association annual meeting on June 5. of the largest manufacturers of metallurgical goods in Russia. The Yury Mishin, PhD, of the Oskolsk partnership was founded in 2001 Electrometallurgical Plant was to coordinate efforts to protect the elected vice-president and chair interests of Russian metallurgists of the steering committee. The and carry out joint projects of a non- supervisory board is now led by commercial nature.

>>> “GREEN CERTIFICATE” AT A DISCOUNT

TMK-ARTROM and TMK- >>> TMK IPSCO RESITA are the first of RECOGNIZED AS 14 Romanian companies BEST TUBULARS to become eligible for MANUFACTURER “green certificates” at a discounted price. As of At the sixth annual January 1, 2015, the cost Awards for Steel of energy from renewable Excellence, TMK resources purchased IPSCO came away with a “green certificate” the winner in the was reduced by 60% for category “Best TMK-ARTROM and by Tubulars Manufacturer.” The award was based on the results of a competition conducted by 85% for TMK-RESITA. The American Metal Market (AMM), a respected research journal of the U.S. steel industry. anticipated savings on electric bills is estimated Winners received their awards on June 9, 2015 in New York. Prizes were awarded in 15 at about 1.5M euros categories to companies that had demonstrated notable success in development and innovation annually. in the metallurgical industry.

>>> EUROPEAN QUALITY

At Volzhsky and TAGMET, the international certification company TÜV NORD has conducted a witness audit to ensure that goods are meeting the requirements of European standards. TAGMET successfully passed the welded pipe quality control audit, while VTZ proved it is able to manufacture welded and hot-rolled tubes according to DIN EN 10210-1, DIN EN 10216- 1, DIN EN 10216-2, DIN EN 10216-5 and DIN EN 10219-1 and also that its products meet the safety requirements of European Directive 97/23/EC PED – “Pressure Equipment” and EU CPR Regulation 305/2011 “Construction Materials.” Safety certificates are mandatory when exporting pipe to Europe for the construction industry and when exporting pipe for subsequent fabrication of pressurized equipment.

3 YOURTUBE News

>>> TMK IPSCO TELLS OF ITS INNOVATIONS

Kent Li, TMK IPSCO Seamless Rolling Expert, gave a presentation at the AISTech 2015 (Association of Iron and Steel Technology) international metallurgical conference held in Cleveland, Ohio. The conference was dedicated to advancing engineering solutions in the manufacturing, processing and use of steel in industry. >>> FOR CUSTOMERS IN ASIA In his presentation, Li TMK took part in the Asian Oil, Gas & and equipment are presented at this discussed new opportunities Petrochemical Engineering Exhibition exhibition. for expanding the coupling 2015, which was held in early June in stock product mix produced Kuala Lumpur, Malaysia. The exhibition At the TMK booth, experts from the TMK by TMK IPSCO, which will is the largest industry event in Asia, representative office in Singapore held enable it to meet market and is supported by the Malaysian meetings and conducted discussions demand without having to prime minister and the nation’s biggest to develop partnerships with regional purchase these products companies. The latest technologies consumers of tubular goods. from outside parties.

>>> CR13 FOR ROSPAN INTERNATIONAL

TMK has manufactured and shipped high-tech premium pipe made from Cr13 steel to Rospan International, a subsidiary of the Rosneft oil company and the operator of the East Urengoy and Novy Urengoy gas condensate fields in the Yamalo-Nenets Autonomous Okrug. These >>> LUKOIL AT SEVERSKY TUBE WORKS products were manufactured with the cooperation of LUKOIL technical experts visited Seversky Tube Works to see the results of its comprehensive Sinarsky Pipe Plant and plant renovations. Guests visited the meltshop and pipe mill, the meltshop’s express Volzhsky Pipe Plant. laboratories and the laboratories of the welded pipe-testing group. At Pipe Mill 1 the LUKOIL representatives watched a demonstration of advanced rolling technology.

At a partners’ meeting, Alexander Medvedev, Director of the Russia/CIS Technical Sales Directorate, gave a presentation on new kinds of TMK tubular goods, including goods for northern fields. STW Managing Director Mikhail Zuev talked about metallurgical and machine- building advancements at the heart of the STW renovations.

4 YOURTUBE >>> ALL ACCORDING TO PLAN

TAGMET has completed a scheduled overhaul of equipment.

In the pipe mill, equipment parts were replaced on two furnaces, a sizing mill, a straightener, a refrigeration unit and an inspection line; the lining of one of the furnaces was also replaced. At the welding mill, >>> DECISIONS BY SHAREHOLDERS repairs were made to the strip- reheating furnace, including a new At the annual general meeting of TMK, Company. It was also decided not to pay additional thermal block, which shareholders approved the annual report, out dividends for the 2014 fiscal year. will make it possible to go longer the 2014 fiscal year-end accounting between repairs. Comprehensive reports and other key company documents The following were elected to the Board repairs, maintenance adjustments for the upcoming year, including a new of Directors: Mikhail Alekseev, Andrey and fine-tuning were also version of the articles of incorporation, Kaplunov, Peter O’Brien, Sergey Papin, performed in each area. which changes the company’s form of Dmitry Pumpyanskiy, Robert Foresman, incorporation in accordance with current Igor Khmelevsky, Anatoly Chubais, Russian Federation law, from Open Alexander Shiryaev, Alexander Shokhin Joint-Stock Company to Public Joint-Stock and Oleg Shchegolev.

>>> TMK AND ROSNEFT AGREE TO PARTNER >>> QUALITY UNDER CONTROL

As part of the Saint Petersburg International Economic Forum, TMK-ARTROM held a company training workshop on the TMK and Rosneft have signed a partnership agreement for ISO 9001:2015 quality management standard in mid-April. product supply. The agreement envisions joint Dan Stefanescu, director of strategy and development scientific research activities to develop and manufacture high- at QUASARO SRL and senior consultant at the Kaizen tech lubricants. It proposes performing a joint technical audit of Institute, told QC experts from 18 enterprises in the Russian, equipment to ensure the best use of lubricants and the production American and European divisions of TMK about the new ISO of the new line of petroleum products. 9001:2015 requirements, which are expected to be approved in September 2015. He also talked about the effect of those requirements on the functioning of the quality management systems already implemented across the company.

4 YOURTUBE 5 YOURTUBE News

>>> TMK-ARTROM SUPPORTS THE OPENING OF A CENTER

In May, a representative office of Rossotrudnichestvo – the Russian Center for Science and Culture – opened >>> A RELEVANT CONVERSATION its doors in the Romanian capital of Bucharest. The intergovernmental agreement on the opening of the TMK took part in the Russian national conference titled “Steel center was signed with the active support of Russian Pipe: Manufacturing and Regional Sales.” The event was companies operating in Romania, including TMK-ARTROM. organized by the information and publishing service Metal Supply and Sales with the support of the Russian Union of Metal TMK-ARTROM supports Russia’s cultural projects in Goods Suppliers. Romania. Recently, thanks to the company’s sponsorship, the publication “Power of Memory” was produced for the TMK was represented at the event by Igor Pyshmintsev, general 70th anniversary of victory in World War II. “The opening director of RosNITI; Roman Grokh, assistant head of the TMK of this center is an important historic event and takes the Marketing Department and Alexander Kuznetsov, sales director of cultural and humanitarian relations of our two nations TMK’s Taganrog division. to a fundamentally different level. We are happy to have played an active role in this,” commented Adrian Popescu, Head of the TMK European Division.

>>> COMPANY DESCRIBES TRENDS >>> FUNDS WILL GO TO SCIENCE

TMK took part in the international industry TMK made a major financial contribution to the conference titled “Russian Metals Market endowment fund of the MISiS National University of 2015: Market Conditions and Forecasts,” Science and Technology. These funds will support the which was held in late May in Moscow. scientific work of the Pipe Manufacturing Equipment and Key topics at the conference included new Technology department. global market challenges and development trends as well as forecasts for steel- TMK and MISiS have been partners for many years. The consuming industries in Russia. During company is a contributor to the university’s endowment the session “Russia in the International fund, taking part in developing educational, scholarship Market for Iron and Steel Products,” TMK and infrastructure projects. In 2013, TMK founded a Director of Marketing Sergey Alekseev gave scholarship named after A.D. Deineko, which is awarded a presentation on trends in the global and for success in academic and scientific activities in Russian pipe markets. metallurgy.

6 YOURTUBE TMK and Power of Siberia

TMK joined the ranks of The Power of Siberia is one of began in September 2014. with active tectonic faults tubular good suppliers for the today’s key Gas production is slated to or elevated seismic activity, Power of Siberia project based projects, opening up new begin at Chayanda field in late which requires the reliable on the outcome of a Gazprom opportunities for delivering 2018, by which time the first and high-performance piping tender held in March 2015. gas to Eastern Siberia and the phase from Chayanda field to solutions that our company The company won one of the Far East. The new gas pipeline will have will provide. We will also take largest lots to deliver line system is designed to transport been built, stretching more part in subsequent Gazprom pipe in 2015 and 2016. The gas from and Irkutsk than 2,200 km. More than 1.7M tenders to supply pipe for the products to be shipped include gas production centers to tonnes of pipe will be used transmission pipeline. We plan 1420 mm pipe with 21.7 mm the Russian Far East and to to implement this project in to become a comprehensive wall thickness made from X70 . The gas transmission 2014–2018. supplier of seamless casing strength grade steel rated for pipeline will extend 4,000 km. and tubing pipe for the an operating pressure in excess The technical characteristics “Participating in the large-scale Chayanda and Kovytka fields, of 9.8 MPa, manufactured at of the transmission pipeline Power of Siberia project is a where gas will be produced Volzhsky Pipe Plant. For all of currently under construction serious and critical challenge to fill the Power of Siberia 2015 and the first two months are as follows: diameter for TMK and the other domestic pipeline,” commented TMK of 2016, TMK plans to ship — 1420 mm; operating pipe companies involved in the President and CEO Alexander 152,000 tonnes of pipe as part pressure — 9.8 MPa (100 project. The new transmission Shiryaev. of the Power of Siberia project, bar); throughput — 61 BCM line will be built in areas with 60,000 of which have already of gas annually. Construction challenging geological and been delivered. of the transmission pipeline climatic conditions and in areas

7 7 YOUR YOURTUBETUBE Major Upgrades Completed at tmk ipsco’s Ambridge Plant

After forty days of around-the-clock in a new foundation, installing a work by more than 200 employees new hydraulic valve stand, a new and contractors, the Ambridge plant latch housing and new thrust went back on line with a rebuilt block runway. Because this work rotary furnace and piercer, days was performed in parallel with the ahead of the original schedule. rotary furnace, it presented a great TMK IPSCO invested more than $15 opportunity to have operations, million in the capital improvements, maintenance and engineering work demonstrating the company’s closely together to deliver the very commitment to the Ambridge plant best result. and community. In addition, the plant took advantage “We took advantage of the slowdown of the idling to do some significant in demand for seamless OCTG maintenance jobs, including due to the current low levels of rebuilding/replacing motors, drilling,” said Dave Diederich, vice replacing bearings and re-aligning president and chief manufacturing equipment. The gearbox for mandrel officer. “These improvements were mill stand #8 was replaced. Both originally scheduled for later, but stretch mill gearboxes were with the current lower volumes we removed, re-machined and had new had the opportunity to complete the bearings installed. Ron Cadman of upgrades and had the time available the maintenance department kept to run ahead to meet our customer communication lines open with daily requirements. We want to be sure updates of all outage activities. we are fully prepared to meet our customers’ needs when the market The maintenance department did an turns around.” outstanding job cold commissioning the equipment once the installation The forty year-old rotary furnace is work was complete. They worked from several plants assisted with “better than new,” according to Tom 16-hour days to ensure the schedule the outage. Besides Adam Calender Weber, director of capital projects. was met. The operations department from the Camanche Plant, Rich Some design improvements which then set up, calibrated and hot Arndts and Jim Truskot from Wilder were incorporated into the rebuilt commissioned the equipment. and Sam Abernathy from Blytheville unit made it stronger. The new also assisted on the outage and the refractory material installed and fine “The one thing that stood out for start-up. tuning of the burners will all lead me was the level of teamwork in to better performance. The project, all aspects of the project,” Plant Dave Diederich summed up the led by Senior Project Engineer Jeff Manager Frank Corona said. The accomplishment by saying, “Great Humes and assisted by Project teams of production, maintenance, planning. Great execution. I couldn’t Engineer Adam Calender, finished and engineering employees were be more proud of what you guys have ahead of schedule and on budget. complemented with the experience accomplished there. Tom Weber really of TMK Chief Mechanical Engineer got all of our resources involved in The piercer project, led by Ray Sergey Makovetskiy who made the outage. Thanks for your hard Terza, Ambridge plant senior project several visits to the plant during work, focus and dedication.” engineer, involved installing a new the planning phase and as the SMS Meer piercer housing, putting plant came back on line. Engineers

8 8 YOUR YOURTUBETUBE 9 YOURTUBE The original piercer foundation was completely removed and replaced.

Hot commissioning of the piercer

The new piercer is set into place with the help of two cranes.

8 YOURTUBE 9 9 YOUR YOURTUBETUBE Sergey Chetverikov Transporting strategic Managing Director of resources for long the Volzhsky Pipe Plant distances will continue In the near term, the line pipe segment will remain one of the pipe to remain a crucial task. market’s most promising in terms of demand. Current and anticipated pipeline projects give manufacturers the confidence to generate orders, but also require that they be prepared to offer tubular goods possessing the requisite technical attributes. Sergey Chetverikov, Managing Director of the Volzhsky Pipe Plant, one of the leading line pipe manufacturers in Russia, offers his perspective.

Line pipe has always been considered this new product helped reduce a strategic product. Why do you think the percentage of line pipe being this is and what is unique about this imported. Extensive refurbishment type of tubular good? and upgrades to Russian pipe plants That is definitely true. Line pipe is producing large-diameter pipe in used mainly to construct transmission 2006-2009, including Volzhsky, pipelines that extend for thousands made it possible today to be almost of kilometers. The scale of these entirely line pipe independent structures and the fact that they are of imports. Domestic line pipe is designed to remain in operation meeting the demands of Gazprom, a long time – up to 35 years – Rosneft, Transneft and other leading places additional responsibility customers of these products. Russian on the manufacturers of these pipe manufacturers are prepared to tubular goods. That is in addition to maintain this position as they head flawlessly fulfilling all the customer’s into the future. Furthermore, our most stringent requirements as domestic line pipe manufacturers to the geometric parameters and now have excess production capacity mechanical properties of the line – total production capacity is almost pipe, coupled with high quality. For twice the current level of demand for the foreseeable future, oil and gas these goods. will play a dominant role in our lives and the task of transporting these How have the requirements for line strategic energy resources great pipe changed over the past decade? distances, from hard-to-reach places What pipe properties have become to the most remote corners of the the critical ones for today’s pipeline and microalloy content while still world, will be a crucial one. projects, including offshore projects? maintaining weldability and other The latest designs of onshore and important characteristics. The most How would you describe today’s offshore gas transmission pipelines obvious advantage of using high- domestic line pipe market? Have are based on high operating strength pipe is the lower quantity import substitution issues been pressures – 1700 psi and 3200 psi of metal consumed, since pipe wall resolved yet? respectively. This means that pipe thickness can now be reduced. Domestic pipe manufacturers will be of higher strength grades began addressing the issue of – X90, X100 and X120. Being able To carry out today’s pipeline projects, import substitution back in the late to increase operating pressure such as the “Power of Siberia” project, 1960s and early 1970s. From the through the use of high-strength electric-welded pipe with high beginning, Volzhsky was built to be steel that can withstand challenging strain capacity and a low yield-to- a manufacturer of tubular goods for climatic conditions is important. ultimate-strength ratio is required. the oil and gas industry and in 1970 The advancement of metallurgical This pipe is designed to be laid in its electric-weld pipe shop began technologies is making it possible permafrost and active tectonic fault producing its first products. This to achieve the requisite strength zones. Production of this unique shop was one of the ”early birds” in characteristics by increasing wall pipe, measuring 1420x32 mm, was large-diameter pipe manufacturing thickness and increasing toughness mastered in the latter half of last in the Soviet Union and assimilating without changing the overall alloy year using a process developed

1010 YOUR YOURTUBETUBE Transporting strategic resources for long distances will continue to remain a crucial task.

at Volzhsky with the support of production engineering and quality How would you assess the company’s RosNITI experts. Today we are ready control requirements of our key capabilities in this area? to produce these goods, which customers. For instance, on the For many years now, our company previously could only be procured longitudinal-welding line we has been moving voluntarily toward abroad. The same can be said of pipe installed an additional automatic stricter product quality control manufactured according to the DNV ultrasonic testing unit and the X-ray requirements and in many areas international standard for offshore oil inspection units are continuously we’ve outpaced the potential new and gas field development. being upgraded. On the internal requirements and demands of our coating line, the installation of a key clients. We have developed and More than six years have passed pipe surface vacuum cleaning unit is initiated our own TMK-1 and TMK-2 since the introduction of the in its final stages. A system is being proprietary standards, which have longitudinal welding machine. introduced for in-process non-contact significantly reduced the potential What developments have occurred measurement of the geometric margin for variance. Tubular goods since then in the manufacture of parameters of longitudinally welded are being inspected according to longitudinally welded pipe? pipe after each process phase. more stringent criteria, in particular We have carried out a number with regard to threading quality and of projects to upgrade existing What is being done in response to geometric parameters. equipment or install new units customers’ increasing demands for so we can meet the additional high quality control of tubular goods?

10 YOURTUBE 11 YOURTUBE Regarding our international customers, one example is ExxonMobil, which imposes very Longitudinally welded pipe is at the moment. However, the number of stringent requirements for ultrasonic quite capable of fitting the bill, but orders for line pipe remains at a fairly product testing. At the third pipe mill spiral welded pipe has other good high level with Russian manufacturers on the gaslift line, two Socomate prospects for the future. In terms of on average operating at about 75% of phased-array pipe end section structural engineering applications, production capacity. The needs of two inspection units are in operation and it can be used in bridge pylons, major projects – the “Power of Siberia” and a similar unit has now been installed wharfs and docking facilities. Chinese “Southern Corridor” – account for most to inspect the pipe body as well. This builders led the way in this use in of this optimal utilization of production unit has already been put into pilot the 36 km-long Hangzhou Bay Bridge, capacity. We also should not disregard production and obtained approval built on piles made from spiral the manufacture of pipe for repair and from Shell representatives who welded pipe. Volzhsky already has a operational needs, primarily for Transneft observed it in operation. ExxonMobil track record with the construction and Gazprom. On top of everything else, is scheduled to audit the unit soon. A of the Ust-Luga Sea Port in the Gulf these companies also repair and rebuild recent American Petroleum Institute of Finland. We recently received an “old” oil and gas transmission pipelines (API) audit at Volzhsky resulted order to manufacture pipe for the running through various regions across in high ratings of the workforce’s construction of the Sabetta port on Russia. technical competence and the the Yamal Peninsula, and have sent process validation and product samples of our products for testing to Line pipe is Volzhsky’s calling card on the traceability program. construct a bridge across the Kerch pipe market and within TMK, but the plant Strait. also produces other types of products that We are proud of our factory are in demand in the oil and gas industry. traceability system, which While a number of pipe market What innovations have been developed automatically archives and saves all segments are currently declining, recently? product parameters. It is this system the line pipe market appears to be When developing and assimilating that confirms the pipe conforms to all the most optimistic and has good new types of products, we try as hard the individual parameters. prospects. What kinds of projects can as we can to factor in the needs of all pipe manufacturers count on most the major customers. That goes for What are the challenges and of all? import substitution projects, too. For prospects today for producing It’s true that certain segments are example, based on the results of our helically welded pipe? showing a decline, which has to do work with Gazprom on a joint technical Spiral welded pipe is not the least bit with difficult economic conditions cooperation program since 2012, plans inferior to longitudinally welded in terms of its strength characteristics or the reliability of its welds. Today, in the construction of transmission pipelines, there is a consistent trend toward increasing their transmission capacity as much as possible by increasing the pressure of the oil and gas being transported, which means increasing pipe thickness and the strength of the alloy that is used. However, the thickness of helically welded pipe is limited in part by the thickness of the coiled metal; according to present-day international practice, its maximum thickness is 25.4 mm (1 inch). But to construct transmission pipelines, the customer needs line pipe with a wall thickness of 27 mm, 33 mm, or even 39 mm.

1212 YOUR YOURTUBETUBE call for developing more than 20 new products for gas production and transport at TMK plants, the Volzhsky Pipe Plant in particular, by the end of this year. The question of expanding the practice of using pipe with TMK UP premium connections at Gazprom fields is under Our company voluntarily discussion. tightens its quality An example of our latest innovations includes manufacturing pilot batches of pipe according to new specifications, using inspection requirements, a material that was completely new to Volzhsky: 20ALCE steel with the addition often exceeding the of rare-earth metals. These pipes are distinguished by their enhanced water- and corrosion-resistance and are designed requirements of our key to transport oil and gas in the country’s northern regions. The latest innovations customers. also include a pilot batch of sour service tubulars with higher alloy content for downhole equipment that faces the most arduous operating conditions. We are constantly searching for new opportunities to develop and assimilate products to best serve our customers.

1313 YOUR YOURTUBETUBE TMK delivered 1,696,000 tonnes The Gazprom – of tubulars to Gazprom TMK Partnership in the last five years Gazprom has always been a key partner for TMK. The needs of Gazprom in many ways shape the product mix offered by TMK plants and the types of new equipment put into service. After a decade of R&D collaboration with the gas giant, TMK has developed more than 70 new products.

TMK was one of the first Russian manufacturers of pipe for transmission pipelines, contributing appreciably to import substitution in this sector. In a major breakthrough, Russian companies, TMK included, have helped build the Bovanenko-Ukhta high-pressure gas pipeline. TMK is drawing on experience gained through involvement in the major and complex Gazprom project, supplying its biggest customer with products for hydrocarbon transportation as well as well drilling and completion.

Products supplied by TMK include casing pipe and tubing with premium field and other Yamal fields; TMK agreement for 2015-2020. Over the threaded connections for the has set up production of pipe with five-year period, TMK is expected to Bovanenko oil- and gas-condensate advanced properties, especially for engineer and set up production of extreme north conditions; developed 25 new products designed to meet thermally insulated tubing engineered Gazprom needs, 15 of which will for the fields on the Yamal Peninsula replace existing imports. They include Shipments of TMK pipe to Gazprom (000’ tons) and in other regions with permafrost; pipe with enhanced strain capacity produced large-diameter casing pipe for sub-sea pipelines, as well as 482 with weld-on connectors, designed to casing pipe, tubing and drill pipe for 500 452 be used as surface casings for deep- difficult fields and offshore projects. 450 water wells; developed GreenWell Most program activities will involve 400 lubricant-free coating for threaded continued expansion of production 350 338 connections; and provided casing of TMK premium products, including 300 258 strings assembled entirely from lubricant-free coatings for threaded 250 Russian-made equipment. connections and products made with 200 165 new alloys and materials. 150 TMK and Gazprom have thus far 100 implemented three R&D collaboration The outcome of this program, 50 programs. Last year, the companies scheduled through 2020, is that signed a new R&D collaboration Gazprom will improve the operational 2010 2011 2012 2013 2014

1414 YOUR YOURTUBETUBE TMK has extensive experience participating in large-scale and complex projects with Gazprom.

Vladivostok transmission pipeline was tested.

Bovanenko-Ukhta and Ukhta-Torzhok When completed, this high-pressure gas pipeline will be more than 2,400 km long. The first line of the Bovanenko-Ukhta gas pipeline is over 1,240 km long. It entered service in October 2012.

Sakhalin-- A crucial project of the Eastern Gas Program, this gas transport system begins on Sakhalin, crosses the Nevelski Strait and then runs through Komsomolsk-on- and Khabarovsk all the way to Vladivostok. Its total length is more than 1,800 km. TMK provided line pipe for the project. The first facility entered service in 2011.

South Corridor (onshore portion of ) The overall length of this gas transport system will be 2,506 km. The project timeline is 2010-2017. It is being implemented across eight constituent regions of the Russian Federation: Nizhniy Novgorod, Penza, Saratov, Volgograd, Voronezh and Rostov Oblasts, the Republic of Mordovia reliability and efficiency of its facilities Novgorod, Vladimir, Ivanovo, Yaroslavl, and Krasnodar Krai. and TMK will set up production of new and Vologda. Its total length is about product varieties, reinforcing its market 650 km. TMK provided large-diameter Bovanenko Field positions through import substitution. pipe for the pipeline. Construction was This field stores the largest gas completed in 2012. reserves on the Yamal Peninsula. The Gazprom projects for which TMK has first startup facility was launched in supplied tubulars include: Gryazovets-Vyborg (onshore portion 2012. The field will be ramped up to its of ) design capacity of 115 BCM of gas in Yamal-Europe The gas pipeline runs through Vologda 2019-2021. This transnational gas pipeline crosses and Leningrad regions. It is 917 km Russia, Belarus, Poland and Germany. long. Its design capacity is 55 BCM of Power of Siberia Its overall length exceeds 2,000 km. gas per year. This gas transport system is designed to carry from the Yakutsk Central Asia – Center Kirinskoye Field and Irkutsk gas production hubs to This 5,000-km gas pipeline runs Located off Northeastern Sakhalin, 28 the Russian Far East and China. It will through Turkmenistan, Uzbekistan, km from shore in the Sea of Okhotsk, have a length of about 4,000 km and Kazakhstan and Russia. the sea depth in the area of the field a design capacity of 38 BCM of gas per is 90 m. In October 2013, the first gas year. Construction began in September Pochinki-Gryazovets was produced and the gas transport 2014; TMK started product shipments This gas pipeline crosses Nizhniy system to the Sakhalin-Khabarovsk- for the mega-project this year.

14 YOURTUBE 15 YOURTUBE Vladimir Shcherbatykh Head of TMK’s Middle East Division and General Director of TMK GIPI

The nations of the Middle East possess 65% of proven global oil reserves and 44% of gas reserves. Virtually all of the world’s leading oil and gas companies have a presence here. Vladimir Shcherbatykh talks about operating in one of the most important tubular goods sales markets.

What is distinctive about the Middle East market? It is a very promising market. The region of the Middle East, North Africa and South Asia includes 21 oil and gas producing countries and more than 150 pipe manufacturers are represented here, including the largest oil and gas operators. In this region, total daily production accounts for as much as 41% of global oil volume and 22% of gas volume. The level of proven reserves here makes it possible to imagine there is great potential for further growth of the oil and gas industry. Despite the rescheduling of certain projects due to the economic and geopolitical situation, we have seen relatively stable pipe consumption this year.

What countries are these competitors from and what advantages do they have? Most of the suppliers are from Korea, India and China. They are vertically integrated companies, with their own coil and pipe manufacturing facilities, ports and fleets. They can offer their products at extremely low prices, making a small profit per tonne, but making up for it in sales volume.

16 YOURTUBE The region of Middle East, North Africa and South Asia encompasses 21 oil-producing countries

Under these circumstances, what can that it does. Nevertheless, key GIPI TMK do to differentiate itself? management positions are held by We are focused on developing specialists who formerly worked at partnerships with our clients, TMK’s Russian divisions. Overall, our improving our products, expanding team has an international flavor. In our range of services and changing addition to Russians and Omanis, our approach to manufacturing we have people working for us from according to customers’ needs, India, Korea, the Philippines and offering them the best solutions and Pakistan. keeping our ears open to new market demands. This work has already been What has changed at the company fruitful. TMK GIPI is a top performer since GIPI became a part of TMK? in the Oman pipe market. We are In this market, TMK GIPI now serves striving to get all the pipe orders as a provider of packaged solutions, on the local market that fall within which includes the products of our product mix. We also offer our other companies in the TMK family. customers warehousing services, This makes what we offer more the services of our laboratory attractive to the major oil and gas and internal and external operators and has allowed us to get coating application services the processing chain up and running for tubular goods. Beyond smoothly in the manufacture of that, we believe that TMK’s tubulars. For example, together with targeted participation TMK IPSCO, we are producing J55 in national programs strength grade casing pipe, as well and national strategies as line pipe, for the American market. serves to strengthen our We apply an anti-corrosion coating to position in the region. pipe made at TMK’s Russian plants. And one of the latest examples is TMK acquired a share that we worked with the Volzhsky of GIPI capital when it Pipe Plant to fulfill an order from acquired a controlling Shell for the Majnoon project in Iraq. interest. Might the company increase its Another area of cooperation is prod- ownership share? uct testing. Taking note of the trend The government in Oman and the Persian Gulf nations of Oman is focused toward bigger orders for high- on developing the strength tubulars (Х60-Х65), with ad- country’s industrial ditional requirements for resistance complex: state-owned to various types of corrosion, we are oil and gas companies are actively planning to bring TMK’s R&D lending support to local centers in Houston and Chelyabinsk manufacturers provided they on board to conduct the necessary meet certain requirements, testing. Last year the company de- which includes having Omani cided to use TMK GIPI as a licensing shareholders as owners of the center for premium connections to companies. This is why TMK GIPI promote them in the region. has the equity holding structure

17 YOURTUBE TMK GIPI is a supplier of integrated solutions including the products of other TMK plants

Are there any plans to develop TMK GIPI’s This year, TMK GIPI is planning to employee contributes something manufacturing facilities? increase sales by increasing deliveries of distinctly their own, while at the same At the time this site opened in 2009, coated line pipe for pipeline construction time these representatives of different the most advanced equipment had projects being implemented by Omani countries retain their uniqueness. The already been installed here. However, oil and gas companies. We are continuing employees are dedicated to tackling considering the growing market demand, to supply welded line pipe as part of the common goals and what influences their we are actively upgrading our production Kauthar project and there are plans to success is their professional knowledge processes. In the electric-weld pipe shop, ship an additional 15,000 tonnes of K55 and expertise, not anything specific to we produce 18” diameter pipe with a grade welded casing pipe. their nationality or ethnicity. minimum wall thickness of 5.6 mm using X65 grade steel. In the coating shop, Is there an opportunity to further expand Do local conditions such as climate have the production process of applying a the circle of customers of TMK products an impact on operations? powder epoxy to the interior surface of 6” in the Middle East? The workday here lasts just as long diameter pipe is being developed. Considering the limited competition in as in Russia – eight hours, but the a number of projects and its favorable local climate forces us to make some What are the important results of geographic location, we are focusing on adjustments. Our workday begins at 7 2014 operations and what are the Iraq as one of our top-priority markets. a.m., when it is still relatively cool and near-term plans? By the end of the year, we plan to ends at 4 p.m. In addition, the schedule Last year, 65,000 tonnes of tubular goods complete the accreditation of TMK GIPI changes during the holy month of were sold, of which 62% went to the with the state-owned company, the Iraq Ramadan. During that time, we shift the Oman domestic market. However, we Oil Ministry and the South Oil Company. workday by one hour so that our Muslim took part in implementing a wide range Furthermore, we are taking part in employees can attend communal prayer. of major infrastructure projects outside several tenders involving the supply of We respect the religious beliefs of our Oman as well. High-strength Х65 pipe, goods for a number of projects in Iraq. Omani colleagues. with a three-layer polyethylene coating for use in corrosive environments, was You already mentioned that the team What else is distinctive? For example, are supplied for a joint project between you have in place is an international there any national or ethnic dishes served the companies ADNOC and Masdar. We one. What is it like to work with such a in the plant cafeteria? shipped sour service pipe with a three- team? How are you able to motivate Our cafeteria offers a multi-course lunch layer polyethylene coating to Saudi your employees to work toward common consisting of three dishes, but the cuisine Chevron for the construction of a pipeline goals? is not exclusively traditional Omani. The linking the central oil production facility A multi-national staff has its advantages. chief task of the catering company is at the Wafra field in the Neutral Zone For the employees, it is a good to plan a menu that will be enjoyable (operated jointly by Saudi Arabia and opportunity to expand their horizons for people from various cultural Kuwait) and the terminal at the Port of to better understand the culture and backgrounds. Mina Saud in Kuwait. traditions of other peoples. Each

18 YOURTUBE TMK Sales Network

Trade House ТМК (Head Office), Trade House ТМК, Azerbaijan TMK IPSCO, Canada  Moscow 22, Karabakha Str., Baku, AZ1008, 150 6th Avenue SW #5100 40-2a, Pokrovka Str., Moscow Azerbaijan Calgary, AB T2P 3Y7, Canada 105062, Russia Tel/Fax: + 994 (12) 496-19-18 Tel: +1 (403) 538-21-82, Tel: +7 (495) 775 7600 E-mail: [email protected] Fax: +1 (403) 538-21-83 Tel/Fax: +7 (495) 775 7602 Тел./факс: +994 (12) 496-19-18 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] TMK IPSCO U.S. Sales Office and Trade House ТМК, Volzhsky Trade House ТМК, Turkmenistan Research & Development Center 6, Avtodoroga 7 Str., Volzhskiy, 29, Arshabil chaeli Str., “Nebitshi” 10120 Houston Oaks Drive, Volgograd region, 404119, Russia hotel, 1939, Ashgabat, Turkmenistan Houston, TX 77064 Tel: +7 (8443) 22-27-77, 55-18-29 Tel/Fax: +993 (12) 48-87-98 Tel: +1 (281) 949-1023 Tel/Fax: +7 (8443) 25-35-57 E-mail: [email protected] Fax: +1 (281) 445-4040 E-mail: [email protected] Trade House ТМК, Polevskoy Trade House ТМК, Uzbekistan 7, Vershinina Str., Polevskoy, 24, Oybek koch, Tashkent sh., TMK Global AG the Sverdlovsk region, Uzbekiston, 100015 2, Bldv. Du Theatre, CH-1211 Geneva, 623388, Russia Tel./Fax: +998 71 281-46-13, CP 5019, Switzerland Tel: +7 (34350) 3-21-05, 3-32-75 +998 71 281-46-14 Tel: +41 (22) 818-64-66 Tel/Fax: +7 (34350) 3-56-98 E-mail: [email protected] Fax: + 41 (22) 818-64-60 E-mail: [email protected] Trade House ТМК, Kamensk-Uralsky ТОО ТМК-Kazakhstan 1, Zavodskoi proezd Rd., 38/1, office # 5, Zheltocsan Str., TMK Europe GmbH Kamensk-Ural’skiy, Astana, 010000, Kazakhstan Immermannstraße 65 c, 40210 Sverdlovsk region, 623401, Russia Tel/Fax: +7 (7172) 31-56-08, Düsseldorf, Germany Tel: +7 (3439) 36-37-19, 36-30-01 31-08-02 Tel: +49 (0) 211/91348830 Tel/Fax: +7 (3439) 36-35-59 E-mail: [email protected] Fax: +49 (0) 211/15983882 E-mail: [email protected] Trade House ТМК, Taganrog Trade House ТМК, China 1, Zavodskay Str., Taganrog, APT19 I, NO.48 Dongzhimenwai Str., TMK-ARTROM Sales Office Rostov region, 347928, Russia Dongcheng District, Beijing, China str. Draganesti 30, Slatina, Olt, Tel: +7 (8634) 65-03-58, ZIP. 100027 230119, Romania (8634) 32-42-02 Tel: +86 (10) 84-54-95-81, Tel: +40 249/430054, Tel/Fax: +7 (8634) 32-42-08 +86 (10) 84-54-95-82 GSM: +40 372/498263 Tel/Fax: +86 (10) 84-54-95-80 Fax: +40 249/434330 Trade House TMK, Orsk E-mail: [email protected] E-mail: [email protected] 1, Krupskaya Str., Orsk, Orenburg region, 462431, Russia Trade House ТМК, Singapore TMK Italia s.r.l. Tel.: +7 (3537) 34-80-19 10 Anson Road #33-06A International Piazza degli Affari, 12, Fax: +7 (3537) 34-80-18 Plaza, Singapore 079903 23900 Lecco, Italy E-mail: [email protected] Tel: +65 (622) 33-015 Tel/Fax: +39 (0341) 36-51-51, Tel/Fax: +65 (622) 33-512 +39 (0341) 36-00-44 E-mail: [email protected] E-mail: [email protected]

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